CHAPTER: OLIGOPOLY

1. What is definition of oligopoly?

- Oligopoly marketplaces are those where a limited number of vendors control

the market and sell similar or identical goods. The interconnected market in
question

2. What is definition of game theory?

- Game theory is study how people behave in strategic situations

3. What is Definition of Nash equilibrium?

- Nash equilibrium is used to show how decision-making is a system of tactical

interactions based on the actions of economic players. It can be used to
simulate economic behavior and forecast the most appropriate reaction in any
situation.

4. How the Size of an Oligopoly Affects the Market Outcome?

- The size of an oligopoly Affects the market outcome as the number of sellers
in an oligopoly grow larger. The Oligopolistic market looks more like a
competitive market and price approaches marginal cost. Quantity produced
approaches socially efficient level.

5. How policymakers prevent oligopolies from engaging in behavior that reduces

competition?

- Policymakers use the antitrust laws to prevent oligopolies from engaging in

behavior that reduces competition.